Cardano Price Risks Mount as ADA Decouples from Bitcoin

Cardano (ADA) is showing signs of divergence from Bitcoin, and that’s raising eyebrows across the crypto community. With Bitcoin recently pushing past a new all-time high, ADA’s lackluster response—combined with its weakening correlation to the market leader—has sparked fresh questions about the altcoin’s short-term direction.

According to recent data, the correlation between Cardano and Bitcoin has dropped to -0.27, meaning the two assets are now moving in opposite directions. Historically, such negative correlations for ADA have often preceded price pullbacks. With Bitcoin thriving and ADA stagnating, analysts are now eyeing a familiar pattern that could spell trouble.

Despite these warning signs, a large segment of the Cardano community remains optimistic. Positive funding rates throughout the month suggest that traders continue to place long bets on ADA’s price rising. This bullish sentiment is helping maintain support at the $0.74 level, giving Cardano a temporary cushion from market pressures.

Still, the mixed signals are hard to ignore. Failed price rallies in recent weeks have made investors cautious, and if the broader market turns bearish or ADA fails to regain momentum, the altcoin could slip toward its next key support level around $0.69. Such a drop would erase much of the month’s gains and may shake trader confidence.

On the flip side, if ADA manages to reestablish a stronger correlation with Bitcoin—especially if Bitcoin continues its upward trend—Cardano could stage a recovery. A bounce off $0.74 and a move toward the $0.80 mark would likely reignite bullish momentum and refute the current bearish outlook.